Meet the world’s new currency of choice

Yes, it is gold bullion, which yesterday made a new high for the current bull market when it surpassed the December 3 interday high of $1,226. Although the yellow metal is both a commodity and currency, it has lately become the world’s currency of choice, i.e. a vote of no confidence in fiat paper. This is evident in the fact that the gold price has not only made a new high in US dollar terms, but also in strong currencies (with the exception of the Canadian dollar) and just about every other currency one cares to mention, as illustrated by the graphs below.

I will let the pictures do the talking. First up is the familiar chart of US dollar gold price, showing yesterday’s fresh high.

3 comments to Meet the world’s new currency of choice

Back to the gold standard. Our economy was solid as a rock till back in 1964 when the USA killed the gold standard. At present April 2011 the price of silver is $38.00 a ounce and gold is over $1500. a ounce. No wonder China is buying it all up. China is not stupid. They know whats going on and we owe them a ton of our worthless dollars. The USA is going broke with nothing in Fort Knox. Help Help!!!!!